The Ministry of Science and ICT is moving to improve regulations to enhance price competitiveness in the MVNO market and support operators that have established their own infrastructure.
The Ministry of Science and ICT announced that it held a roundtable on the 30th at the Seoul MVNO Square, chaired by Chief Director Choi Woo-hyuk of the Information Protection and Network Policy Division, with 10 major MVNO companies to discuss the follow-up implementation plan for the “MVNO Activation Measures” announced at the Gyeong Je-gwan-gye (Minister) meeting held concurrently with the Special Management Inter-ministerial Task Force on Livelihood Prices in July.
The participating MVNOs include Smatel (chair company of the MVNO Association), KB Kookmin Bank, Stage Five, Eyes Vision, Woori Bank, Unicomz, Bunkeda Connect, Toss Mobile, Free Telecom (Inskobi), and Korea Cable Telecom (KCT), totaling 10 companies.
The core focus of the government’s initiative is to support MVNO operators in moving beyond a structure where they simply lease networks from the three major mobile carriers to sell services, by helping them establish their own infrastructure and differentiated services.
To this end, the government will support market entry and growth for competitive operators with their own infrastructure (such as partial MVNOs and Full MVNOs). It plans to amend the Enforcement Decree and Notices of the “Telecommunications Business Act” and link policy finance to support infrastructure investment.
The cost burden on MVNO operators will also be reduced. To increase the capacity for rate reductions among small, medium, and mid-sized operators, the government will expand exemptions from radio usage fees and promote a scheme that applies differential exemption rates based on compliance with laws and regulations. It plans to amend the Enforcement Decree of the “Radio Act.”
Consumer protection will also be strengthened. The standards for customer service personnel at MVNO companies will be raised, and protective measures will be reinforced to ensure users can continue using communication services if an operator suspends or terminates its business.
The Ministry of Science and ICT plans to publish the proposed amendments to the Enforcement Decree and Notices for public comment in October and proceed with subsequent procedures promptly.
Additionally, to improve customer service satisfaction and trust among MVNO users, the government shared plans to raise standards for customer service personnel and strengthen user protection measures in cases of operator suspension or closure.
The industry was urged to expand investments in their own infrastructure and differentiated rates and services beyond simple resale, and to enhance customer service quality and consumer protection.
Choi U-hyeok (Head) stated, “This MVNO activation plan is a starting point for improving the market’s fundamental structure by reducing operators’ cost burdens and expanding their capacity for service differentiation and innovation,” adding, “We will support the flawless implementation of follow-up measures so that citizens can experience lower rates, innovative services, and strengthened consumer protection.”
in TECH
